DELPHI 2012 Annual Report Download - page 111

89
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Real Estate Trust Fund Hedge Funds Insurance Contracts
(in millions)
Beginning balance at December 31, 2010......................... $ — $ — $ —
Actual return on plan assets:
Relating to assets still held at the reporting date........ 1 (1) —
Purchases, sales, and settlements.................................... 42 82 —
Ending balance at December 31, 2011.............................. $ 43 $ 81 $ —
Actual return on plan assets:
Relating to assets still held at the reporting date........ (1) 4 —
Assets assumed in acquisition ........................................ — — 3
Purchases, sales, and settlements.................................... — 6 —
Ending balance at December 31, 2012.............................. $ 42 $ 91 $ 3
13. COMMITMENTS AND CONTINGENCIES
European Union Antitrust Investigation
Delphi has received requests for information from antitrust authorities at the European Commission seeking information
about alleged conduct by Delphi in connection with an investigation of automotive parts suppliers concerning possible
violations of antitrust laws related to the supply of wire harnesses to vehicle manufacturers. Delphi is cooperating fully with the
European authorities. Investigations of this nature often continue for several years and may result in fines imposed by the
European authorities. Depending on its size, a potential fine could result in a material adverse impact on the Company’s
operating results and cash flows. At this time, Delphi is unable to estimate any reasonably possible range of loss that may
ultimately result from this investigation. No accrual for this matter has been recorded as of December 31, 2012.
Unsecured Creditors Litigation
In December 2011, a complaint was filed in the Bankruptcy Court alleging that the redemption by Delphi Automotive
LLP of the membership interests of GM and the PBGC, the initial public offering and a distribution by Delphi Automotive LLP
in the amount of $95 million principally in respect of taxes constituted, in the aggregate, distributions to the members of Delphi
Automotive LLP in excess of $7.2 billion. The complaint further alleged that such aggregate distributions obligate Delphi
Automotive LLP to pay to the holders of allowed general unsecured claims against the Predecessor $32.50 for every $67.50 in
excess of $7.2 billion in distributions, up to a maximum of $300 million. In March 2012, the Bankruptcy Court heard
arguments and granted Delphi’s motion to dismiss the complaint. In June 2012, the unsecured creditors filed an appeal of the
decision of the Bankruptcy Court with the United States District Court for the Southern District of New York (the “U.S. District
Court”). In October 2012, the U.S. District Court upheld the decision of the Bankruptcy Court. Because no further appeal was
taken, the decision is final. No accrual for this matter has been recorded as of December 31, 2012 as the Company was able to
successfully defend against this claim.
Environmental Matters
Delphi is subject to the requirements of U.S. federal, state, local and non-U.S. environmental and safety and health laws
and regulations. As of December 31, 2012 and December 31, 2011, the undiscounted reserve for environmental investigation
and remediation was approximately $21 million (of which $3 million was recorded in accrued liabilities and $18 million was
recorded in other long-term liabilities) and $22 million (of which $5 million was recorded in accrued liabilities and $17 million
was recorded in other long-term liabilities). Delphi cannot ensure that environmental requirements will not change or become
more stringent over time or that its eventual environmental remediation costs and liabilities will not exceed the amount of its
current reserves. In the event that such liabilities were to significantly exceed the amounts recorded, Delphi’s results of
operations could be materially affected. At December 31, 2012, the difference between the recorded liabilities and the
reasonably possible range of loss was not material.